John,I took out the low oil sensor and took the diode off..cut the short wire off grounded to the blower housising..I put the carb on my son's motor it worked fine..if i can't figure it out I'll take it to the pro at rks

I think this is the problem, if I understand what you did. You should have 3 wires.
Yellow with Green Stripe - This is the Ground (On/Off Switch to Ground)
Yellow - On/Off Switch to other Black wire to Coil. The Yellow and Black are connected together with a female fitting. Then the Black goes to the coil.

Take the valve cover off and make sure the rocker arms are on the valves and the push rod is in the lifter. They come off when you remove the cam. Roll the engine over to check valve action and also set the valve lash.